Correlation Between AGFA Gevaert and Ontex Group
Can any of the company-specific risk be diversified away by investing in both AGFA Gevaert and Ontex Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AGFA Gevaert and Ontex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGFA Gevaert NV and Ontex Group NV, you can compare the effects of market volatilities on AGFA Gevaert and Ontex Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AGFA Gevaert with a short position of Ontex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGFA Gevaert and Ontex Group.
Diversification Opportunities for AGFA Gevaert and Ontex Group
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AGFA and Ontex is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding AGFA Gevaert NV and Ontex Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontex Group NV and AGFA Gevaert is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AGFA Gevaert NV are associated (or correlated) with Ontex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontex Group NV has no effect on the direction of AGFA Gevaert i.e., AGFA Gevaert and Ontex Group go up and down completely randomly.
Pair Corralation between AGFA Gevaert and Ontex Group
Assuming the 90 days trading horizon AGFA Gevaert NV is expected to under-perform the Ontex Group. In addition to that, AGFA Gevaert is 1.99 times more volatile than Ontex Group NV. It trades about -0.06 of its total potential returns per unit of risk. Ontex Group NV is currently generating about 0.01 per unit of volatility. If you would invest 762.00 in Ontex Group NV on January 14, 2025 and sell it today you would lose (1.00) from holding Ontex Group NV or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGFA Gevaert NV vs. Ontex Group NV
Performance |
| Timeline |
| AGFA Gevaert NV |
| Ontex Group NV |
AGFA Gevaert and Ontex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGFA Gevaert and Ontex Group
The main advantage of trading using opposite AGFA Gevaert and Ontex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGFA Gevaert position performs unexpectedly, Ontex Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ontex Group will offset losses from the drop in Ontex Group's long position.| AGFA Gevaert vs. Solvay SA | AGFA Gevaert vs. KBC Groep NV | AGFA Gevaert vs. Groep Brussel Lambert | AGFA Gevaert vs. ageas SANV |
| Ontex Group vs. Bpost NV | Ontex Group vs. Barco NV | Ontex Group vs. Biocartis Group NV | Ontex Group vs. ageas SANV |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |